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Tag: Pia

  • Ending petrol subsidy extremely difficult but inevitable – MOMAN

    Ending petrol subsidy extremely difficult but inevitable – MOMAN

    The Major Oil Marketers Association of Nigeria (MOMAN) says ending subsidy on Premium Motor Spirit (PMS) is extremely difficult but the Federal Government has no other option in light of current economic realities.

    MOMAN also called for massive investment by the government in various sectors such as mass transportation, healthcare and education to successfully wean off Nigerians from petrol subsidy.

    A statement posted on MOMAN’s website on Friday said its Chairman, Mr Olumide Adeosun, MOMAN, made this known at the just concluded Association of Energy Correspondents of Nigeria (NAEC) Strategic International Conference in Lagos.

    Adeosun spoke on the topic: “Energy Transition, PIA, Petroleum Pricing and the Way Forward for the Downstream Sector.”

    Represented by Mr Clement Isong, the Chief Executive Officer, MOMAN, Adeosun said it would remain extremely difficult to wean Nigerians off cheap PMS, also known as petrol.

    He said: “It is something that must be done as there are no more viable options.

    “We are told that this year the subsidy bill to the Federal Government may be between N5 trillion and N6 trillion. Clearly, Nigeria cannot afford this.

    “To wean Nigeria off this subsidy, a lot of investment must be done to sensitise Nigerians in convincing them and finding alternatives.

    “We need to begin to remove the subsidy and mitigate the pains Nigerians will feel when petroleum prices begin to manifest their true value.”

    Adeosun said marketers were optimistic that the industry was headed in the right direction with the enactment of the Petroleum Industry Act (PIA) 2021 which was an excellent piece of legislation.

    “We are now at the point of implementation, which is taking a bit longer than hoped but this is not necessarily a bad thing.

    “The President postponed the implementation of free market pricing, which has caused a slowdown with respect to benefits expected from free competitive open market pricing, such as new investments and subsidy removal, ” he said.

    Adeosun said the marketers were also convinced that (the decade of gas declared by the Federal Government in January 2021) was clearly the way forward.

    He said, however, the increase in gas prices worldwide and the unavailability of the product had made it a little more difficult in the roll out.

    Adeosun said: “The ordinary Nigerian who was meant to transit to gas not just for cooking but also for powering automobiles and power generation is struggling and because PMS pricing is yet to be fully deregulated.

    “It creates an aberration and additional challenge for the adoption of gas, as most people are still dependent on cheap PMS for their cars and generators.”

    According to him, while the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has an important role to play in guiding our future, the best regulator ultimately is the market.

    “The market regulates prices if you are too expensive people would not buy from you. The market regulates quality as well as customer service. The market also rewards the best in class.

    “We need to move to an era of transparency and information dissemination.

    “Energy correspondents need to share as much information as possible with the market and public with respect to cost prices, quality, product specifications, customer service and pump prices.

    “That is the best regulation you can ask for,” Adeosun said.

  • Five facts about the newly unveiled NNPC Limited

    Five facts about the newly unveiled NNPC Limited

    Nigeria’s President Muhammadu Buhari has today unveiled the new Nigerian National Petroleum Company Limited (NNPC Limited) in line with the provisions of the Petroleum Industry Act (PIA), 2021.

    The transition from a corporation, which took place at the State House, Abuja, is aimed at promoting transparency, accountability and energy security.

    Speaking at the event, President Buhari described the unveiling as a landmark event that will position the NNPC to compete with other developed countries globally.

    It is worthy to note that President Buhari lead the creation of the NNPC on July 1, 1977, signed the PIB 44 years later in 2021 and today unveiled the switch from a corporation to a limited liability company.

    The Act enables NNPC Limited to run a commercial and profit-focused operation as an organisation under the Companies and Allied Matters Act (CAMA).

    As Nigerians grapple to understand the implications of the transition, here are five facts to note:

    1. The NNPC has not been sold as it is still wholly owned by the Federal Government but will operate like a commercially-run Limited Liability Company.
    2. Operations of the new NNPC will be run by a Board of Directors chaired by former Senator Margaret Cuba Okadigbo.
    3. The nomenclature of the Group Managing Director (GMD) has changed to Group Chief Executive Officer (GCEO), in line with the PIA.
    4. The new NNPC Limited will be regulated in line with CAMA.
    5. NNPC has over 200 million shareholders, with N200 billion share capital, the highest for any single company in the country.

    ALSO READ || NNPC now free from institutional encumbrances – Buhari declares

    The unveiling ceremony today was attended by Senate President Ahmed Lawan, Speaker of the House of Representatives Femi Gbajabiamila, Minister of State for Petroleum Resources, Timipre Sylva, Group Managing Director of NNPC Mele Kyari, Secretary to the Government of the Federation, Boss Mustapha and other stakeholders in the oil and gas sectors.

  • NNPC now free from institutional encumbrances – Buhari declares

    NNPC now free from institutional encumbrances – Buhari declares

    President Muhammadu Buhari on Tuesday officially unveiled the Nigerian National Petroleum Company (NNPC) Limited and declared that the new national oil company is now forthwith free from institutional encumbrances.

    President Buhari unveiled the new NNPC Limited while affirming that the company is mandated by law to ensure that Nigeria’s National Energy Security is guaranteed.

    Speaking at the historic occasion at the State House Conference Centre, the President said Africa’s largest NOC would also support sustainable growth across other sectors of the economy as it delivers energy to the world.

    “The provisions of PIA (Petroleum Industry Act) 2021, have given the Nigerian petroleum industry a new impetus, with an improved fiscal framework, transparent governance, enhanced regulation, and the creation of a commercially-driven and independent national oil company that will operate without relying on government funding and free from institutional regulations such as the Treasury Single Account, Public Procurement, and Fiscal Responsibility Acts.

    “It will, of course, conduct itself under the best international business practice in transparency, governance, and commercial viability,” President Buhari said.

    At the event, which featured a Special rendition of the Theme Song ”Energy for today, Energy  for tomorrow, Energy for Everyone’‘ by an Ensemble, the president recounted how God had used him to consistently play an important role in shaping the destiny of the country’s NOC in the last 45 years.

    He expressed optimism that the NNPC Limited would sustainably deliver value to its over 200 million shareholders and the global energy community; operate without relying on government funding and free from institutional regulations such as the Treasury Single Account (TSA).

    ‘‘This is a landmark event for the Nigerian oil industry.

    ‘‘Our country places high premium in creating the right atmosphere that supports investment and growth to boost our economy and continue to play an important role in sustaining global energy requirements.

    ‘‘We are transforming our petroleum industry, to strengthen its capacity and market relevance for the present and future global energy priorities.

    ‘‘By chance of history, I was privileged to lead the creation of the Nigerian National Petroleum Corporation on July 1, 1977. Forty-Four (44) years later, I was again privileged to sign the Petroleum Industry Act (PIA) in 2021, heralding the long-awaited reform of our petroleum sector,” he said.

    According to him, the provisions of PIA 2021, have given the Nigerian petroleum industry a new impetus, with improved fiscal framework, transparent governance, enhanced regulation and the creation of a commercially-driven and independent National Oil Company.

    He said this would enable the company to operate without relying on government funding and free from institutional regulations such as the Treasury Single Account, Public Procurement and Fiscal Responsibility Acts.

    ‘‘It will, of course, conduct itself under the best international business practice in transparency, governance and commercial viability.

    ‘‘Coincidentally, I, on the 1st of July 2022 authorized transfer of assets from the Nigerian National Petroleum Corporation to its successor company, the Nigerian National Petroleum Company Limited, and steered the implementation leading to the unveiling of Africa’s largest National Oil Company today.

    ‘‘I therefore thank Almighty God for choosing me to consistently play an important role in shaping the destiny of our National Oil Company from the good to the great,’’ he added.

    The president, therefore, assured stakeholders in the industry that Africa’s largest NOC would adhere to its fundamental corporate values of Integrity, Excellence and Sustainability, while operating as a commercial, independent and viable NOC at par with its peers around the world.

    He further stated that the company would focus on becoming a dynamic global energy company of choice to deliver energy for today, for tomorrow, for the day days after tomorrow.

    He thanked the leadership and members of the National Assembly for demonstrating uncommon courage and patriotism in the passage of PIA that culminated in the creation of NNPCL.

    Minister of State for Petroleum Resources, Timipre Sylva, said with the signing of the PIA, which assured international and local oil companies of adequate protection for their investments, ”the nation’s petroleum industry is no longer rudderless”.

    He said: ‘‘From the onset of this administration, Mr. President never concealed his desire to create a more conducive environment for growth of the oil and gas sector, and addressing legitimate grievances of communities most impacted by extractive industries.

    ‘‘While the country was waiting for the PIA, Nigeria’s oil and gas industry lost about $50 billion worth of investments.

    ”In fact, between 2015 and 2019, KPMG states that “only 4 percent of the $70 billion investment inflows into Africa’s oil and gas industry came to Nigeria even though the country is the continent’s biggest producer and the largest reserves.

    ‘‘We are setting all these woes behind us, and a clear path for the survival and growth of our petroleum industry is now before us.”

    Sylva described the unveiling of NNPC Limited as a new dawn in the quest for the growth and development of the Nigerian Oil and Gas Industry, opening new vintages for partnerships.

    He thanked the president for his ”unparalleled leadership, steadfastness, and unalloyed support towards ensuring that the country’s oil and gas industry is on a sound footing”.

    The Group Chief Executive Officer of NNPC Limited, Mele Kyari, announced that the company had adopted a strategic initiative to achieve the mandate of energy security for the country by rolling out a comprehensive expansion plan to grow its fuel retail presence from 547 to over 1500 outlets within the next six months.

    He assured stakeholders and the global energy community that the new company was endowed with the ‘‘best human resources one can find anywhere in the industry.

    ‘‘NNPC Limited is positioned to lead Africa’s gradual transition to new energy by deepening natural gas production to create low carbon activities and positively change the story of energy poverty at home and around the world.”

  • Marginal fields: Amid rancour NUPRC awards licences to 161 coys

    Marginal fields: Amid rancour NUPRC awards licences to 161 coys

    Amid rancour, The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has awarded Petroleum Prospecting Licences (PPLs) to 161 successful 2020 marginal fields awardees.

    The commission also officially unveiled the Host Communities Development Regulations and model Petroleum Prospecting Licences (PPLs).

    Chief Timipre Sylva, the Minister of State Petroleum Resources, at the unveiling and licences presentation on Tuesday in Abuja said the maiden presentation of the PPL was part of the implementation of Petroleum Industry Act (PIA), 2021.

    The successful companies include Ardova Plc, Matrix Energy Ltd., Sun Trust Oil Company Limited, Deep Offshore Integrated Service Ltd., Island Energy Ltd. and Sigmund Oil Field Ltd.

    Others are Shafa Exploration and Production Company Ltd., Emadeb Energy Ltd., Zigma Ltd., Inland Basin Ltd. and Petraco Oil Ltd., among others.

    57 fields presented in the 2020 bid round met the criteria and were subsequently offered for bidding.

    Out of the 665 entities that expressed interest in the exercise,161 emerged as potential awardees while out of the 57 fields, 41 were fully paid for.

    Also, 37 fields were issued with the PPL having satisfied all conditions for award.

    The minister commended the management and staff of the NUPRC for ensuring the successful completion of the process, which began in 2020.

    He described it as a giant milestone for the administration.

    “The implementation of the PIA 2021 is in top gear. Consequently, the new awardees should note that their assets will be fully governed by the provisions of the PIA 2021.

    “As you develop your assets with the special purpose vehicles (SPVs), ensure that good oilfield practice is employed, environmental considerations and community stakeholders’ management are not neglected.

    “It is my strong belief that the awardees would take advantage of the current attractive oil prices to bring these fields into full production within a short period to increase production, grow reserves and reduce cost of production.

    “The onboarding of new oil and gas players in the petroleum sector is part of this government’s policy to encourage more indigenous participation in our petroleum operations,’’ he said.

    Sylva said the development would boost activities in the oil and gas sector.

    He added that it would boost production output and create additional employment opportunities for Nigerians

    Mr Gbenga Komolafe, Commission Chief Executive (CCE) NUPRC, recalled that one of the major tasks inherited by the commission, upon its inauguration in 2021 was the need to conclude the 2020 Marginal Field Bid Round.

    He said the exercise was faced with several constraints which included the COVID-19 interruption, partial payment of Signature Bonuses by some awardees, and the unwillingness of co-awardees to work together in forming SPVs for field development.

    He said the marginal field’s award initiative began in 1999 and was borne out of the need to entrench the indigenisation policy of government in the upstream sector and build local content capacity.

    He recalled that since its inception, a total of 30 fields had been awarded with 17 currently producing.

    He said that the 2020 Marginal Field Bid Round exercise in respect of which PPLs were being issued had attracted government revenue of about N200 million and seven million dollars, respectively.

    He said it was significant to note that the passage of the PIA brought an end to the era of Marginal Field awards.

    “Section 94 (9) of the Act states that no new Marginal Field shall be declared under this Act”.

    “Accordingly, the minister shall now award PPL on undeveloped fields following an open, fair, transparent, competitive, and non-discriminatory bidding process in line with Sections 73 and 74 of the Act,’’ he quoted.

    Komolafe said the impact of the upswing in the crude oil price was not reflecting in the nation’s revenue earnings due to disruptions in our national oil production owing to sabotage, theft, and other operational challenges.

    He urged the potential companies to take advantage of the current market realities and quickly bring their fields to production.

    Speaking on the unveiled Host Communities Development Regulations, he said it was significant for the commencement of implementation of the provisions of Section 235 of the PIA, for attraction of dividends to the host communities.

    Marginal oilfields: Ijaw leaders urge Petroleum Ministry to respect court order

    Meanwhile, some Ijaw leaders in Bayelsa had urged the Minister of Petroleum Resources to respect a substituting order of the Federal High Court, Yenagoa on the Marginal Oilfields Licensing rounds.

    The Court sitting in Yenagoa had restrained the Federal Government from issuing licences on marginal oilfields in the Niger Delta pending the determination of a pending suit.

    The Ijaw leaders, in a letter to the Minister of Petroleum Resources through the Minister of State for Petroleum by their counsel, Mr Enie Otrofaniwei said the letter was to draw the federal government’s attention to the subsisting order.

    The letter noted that as parties with legal representation in the suit, the Ministry of Petroleum Resources was expected to show examples in promoting the rule of law and abide by the court order.

    They vowed to take legal steps to oppose violation of the court order

    Marginal fields are shallow fields with less than 10 million barrels reserve which may not produce crude oil in commercial quantities immediately and would require further development to boost volume.

    Some Ijaw leaders approached the court in 2020 seeking to halt licensing on marginal oilfields located in their domains.

    Following setbacks and delays in the suit, however, the Federal Government announced bid winners on the fields on June 1, 2021.

    Presiding Justice Isa Dashen granted the restraining order in favour of the Ijaw leaders.

    Ijaw leaders who filed the suit are Chief Brown Agu (Opu Agu VIII), Mrs Rosemary John-Oduone, President Ijaw Women Connect and Mr Femowei Friend on behalf of themselves and the Ijaw ethnic nationality.

    The Attorney-General of the Federation and Minister of Justice, the Minister of Petroleum Resources and the Minister of State for Petroleum Resources are defendants in the suit.

    The Ijaw leaders asked the court to restrain the Federal Government from further advertising and receiving bids in respect of the marginal fields.

    They also asked the court to restrain the Federal Government from approving licences in respect of the marginal fields.

    Justice Dashen inherited the case from Justice Abimbola Awogboro following the latter’s transfer to the Lagos Division of the Court.

  • Buhari to unveil new NNPC Ltd July 18

    Buhari to unveil new NNPC Ltd July 18

    The new Nigerian National Petroleum Company Ltd (NNPC Ltd.) will be unveiled by President Muhammadu Buhari on July 18, 2022.

    The Chief Executive Officer of the company, Malam Mele Kyari, said this on Tuesday while receiving the CEO of the Year 2021 Award of the Leadership Newspapers Group in Abuja.

    The Leadership Annual Conference and Awards also saw Vice President Prof. Yemi Osinbajo and World Trade Organisation (WTO) Director-General, Dr Ngozi Okonjo-Iweala receive the Leadership Person of the Year Awards.

    Speaking virtually from Luanda, Uganda where he is attending the meeting of African Petroleum Conference (CAPDE VIII), Kyari expressed “profound appreciation” toward the award.

    He thanked the Leadership Newspapers Group for recognising the efforts of the NNPC.

    He said such recognition was a challenge to do more.

    The new Petroleum Industry Act (PIA) 2021, restructured and empowered the NNPC as a new entity.

  • Effective regulations key to harnessing gains of PIA — Sylva

    Effective regulations key to harnessing gains of PIA — Sylva

    The Minister of State, Petroleum Resources, Chief Timipre Sylva, has underscored the need for effective regulations in harnessing the gains of the Petroleum Industry Act (PIA) for global relevance.

    Sylva said for Nigeria to continue to be relevant at the global stage it must design regulations that could balance the energy base load for Nigeria.

    Sylva said this while declaring open a stakeholders’ consultation forum on draft regulations under the PIA on Wednesday in Abuja.

    Newsmen reports that the draft regulations were prepared by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in conjunction with the Presidential Steering Committee on the PIA.

    The premier consultative forum was aimed at ensuring inputs and considerations of oil and gas stakeholders on the draft regulations for smooth implementation of the PIA.

    The regulations include: Host communities’ development: Petroleum royalty: Upstream fess and rent: Domestic gas delivery obligations: Nigeria conversation; and Licencing regulations.

    Sylva said effective regulations would ensure that Nigeria was not left behind in the energy transition train while still harnessing our rich natural hydrocarbon reserves.

    The minister expressed hope that the input from various stakeholders would further clarify the draft regulations and eventual firming up of the final regulations for use.

    According to the minister, the government has a mandate of ensuring sound management of the oil and gas sector considering the key role the sector plays in revenue generation for the country.

    He said it was on this background that the Presidential Steering Committee on PIA, which he chaired, played the pivotal role in collaborating with NUPRC in drafting the first set of regulations for review.

    He commended the effort of the commission in the preparation of those draft regulations to beat the deadline set by the law for the commencement of the implementation of the PIA.

    “I am hopeful that the regulations when fully implemented will help in no small measure in the smooth take-off of the day-to-day operations of the NUPRC,’’ he added.

    Recall that on Aug. 16, 2021, President Muhammadu Buhari assented to the PIA after the National Assembly passed the bill.

    Sylva said that the eventual assent signaled a new era and opportunities in the oil and gas sector of the economy after almost two decades of unsuccessful efforts to have the law passed in Nigeria.

    Sylva, while decrying challenges posed by huge divestments in the hydrocarbon explorations by oil majors in the past due to global energy transition called for more innovative ways in fossil fuel exploitation and exploration in Nigeria.

    In a remark, Mr Gbenga Komolafe, Commission Chief Executive, NUPRC said the forum was expected to discuss and finalise the draft Regulations in line with Section 216 of the PIA 2021.

    Komolafe said besides the statutory imperative on the part of the commission to have the regulations finalised on time, there was also the compelling need for the nation to conclude the regulations-making process for PIA implementation.

    This, he said, would enable Nigeria to hedge against the impact of energy transition and take advantage of the oil and gas supply gap resulting from the current developments in Russia and Ukraine.

    “We are conscious of prioritising regulations to meet the timelines in the PIA. As such, this first phase of the stakeholders’ engagement will capture burning issues on the implementation in line with Section 235 of the PIA.

    “And also finalising the 2020 bid round through issuance of Petroleum Prospecting Licence (PPL) in line with Section 94 (2) of the PIA and a host of others,’’ the CCE said.

    The CCE was optimistic that all grey areas would receive adequate clarification with a view to giving meaning to the intent of the PIA for user-friendly implementation and attractive investments.

  • Fuel subsidy: Lawan urges Buhari to transmit bill to amend PIA

    Fuel subsidy: Lawan urges Buhari to transmit bill to amend PIA

    Senate President Ahmad Lawan on Wednesday urged President Muhammadu Buhari to transmit a bill to the National Assembly to amend the Petroleum Industry Act (PIA).

    Lawan made the call in his remarks before referring the President’s request for the amendment of the 2022 Appropriation Act to the Committee on Appropriation after the bill scaled second reading.

    Lawan said a request seeking for an amendment to the PIA would enable the National Assembly extend the subsidy regime in the Petroleum Industry Act.

    This,he said, will be in line with the President’s request for an additional N2.557 trillion naira to cover fuel subsidy in the 2022 budget from July this year.

    The present subsidy regime is expected to elapse in June 2022, in accordance with the provisions of the Petroleum Industry Act.

    Buhari, in a letter to the National Assembly dated Feb 10 requested for an additional provision for N2.557 trillion naira to fund petrol subsidy in the 2022 Budget Framework from July this year.

    Lawan, therefore, mandated the relevant Oil and Gas Committees of the National Assembly to engage the Executive on a bill to amend the PIA to align with the President’s request.

    “This is an opportunity for me to speak to the issue of the Executive sending a request for the amendment of the Petroleum Industry Act to extend the provision of the fuel subsidy which is also requested in the amendment of the 2022 Appropriation Act.

    “The Act itself says something else, that there will be no subsidy. If we approve for subsidy in the 2022 Appropriation Act Amendment Bill to us, then it means we have to extend the period in which government will provide subsidy up to the point this subsidy we approve (N2.557 trillion) would last.

    “So, there is need to come up with the request for amendment.

    “Our Gas and Oil related Committees should work with the Executive side of government to get that sorted as soon as possible, so that what we do is appropriate, and is lawful and legal.”

  • Senate confirms Executive Director-nominees of Nigerian Petroleum Regulatory Authority

    Senate confirms Executive Director-nominees of Nigerian Petroleum Regulatory Authority

    The Senate has confirmed the nominations of five Executive Director-nominees of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

    The confirmation of the nominees followed the consideration of a report by the Committee on Downstream Petroleum Sector.

    Those confirmed include: Francis Alabo Ogaree, Executive Director, Hydrocarbon Processing Plants, Installations and Transportation Infrastructure; and Dr. Mustapha Lamorde, Executive Director, Health, Safety, Environment and Community.

    Others were Mansur Kuliya, Executive Director, Midstream and Downstream Gas Infrastructure; Bashir Sadiq, Executive Director, Corporate Services and Administration; and Dr. Zainab Gobir, Executive Director, Economic Regulations and Strategic Planning.

    Chairman of the Downstream Petroleum Sector Committee, Senator Sabo Mohammed (Jigawa South-West), in his presentation, recalled that the Senate on Tuesday, 8th February, 2022, considered President Muhammadu Buhari’s request for the confirmation of the nominees.

    He explained that the President’s request was in accordance with the provisions of Section 34(3) of the Petroleum Industry Act, 2021.

    According to the lawmaker, the Act empowers the President to make appointments into the board of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) subject to the confirmation of the Senate for a period of five (5) years and may be reappointed for second term and no more.

    Senator Mohammed said that the nominees while appearing before the Committee for screening, responded to a wide range of questions regarding the Petroleum Industry and measures that should be taken to reposition the industry for the benefit of the Nigerian economy.

    “The nominees responded to the questions asked In an intellectual; factual and convincing manner.

    “They exhibited a high level understanding of the challenges, complexities and opportunities inherent in the Petroleum Industry.

    “Their knowledge and experiences will be of great benefit to the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the oil and gas sector in general”, Mohammed said.

    He disclosed that the Committee did not receive any petition against their nominations, adding that they were cleared by the Nigeria Police Force, Department of State Services (DSS) and posses the Code of Conduct Acknowledgment slips.

    The five Executive Director-nominees were confirmed by the Senate after consideration of the report by the Committee on Petroleum Downstream Sector.

  • Petroleum Ministry has delivered on priority areas – Sylva

    Petroleum Ministry has delivered on priority areas – Sylva

    Minister of State for Petroleum Resources, Chief Timipre Sylva has said the Ministry of Petroleum Resources under the purview of President Muhammadu Buhari has delivered on priority areas.

    Sylva, who made this known at a Town Hall meeting with the management and staff of the ministry in Abuja, stressed on how the ministry delivered on all priority project areas assigned to the ministry by President Buhari.

    He emphasized that among other deliveries it had ensured the commencement of renovation works on the refineries through the NNPC Ltd.

    The minister said it had also ensured the commencement of the Train Seven Project, driving the gas revolution and the passage of the Petroleum Industry Bill (PIB) coupled with its signing into law the Petroleum Industry Act (PIA).

    He said that the Nigerian Upstream Petroleum Regulatory Commission and the Midstream/Downstream Regulatory Authority were institutions established on the back of the PIA.

    “Today, what we are doing is working out additional mandates, and I can assure you that in the next one and half years available to us, we will be able to deliver on additional mandates we have devised for ourselves,” he said.

    He said the Year 2022 promised to be very eventful because there was going to be a lot of work.

    Sylva added that it was not a year to embark on new projects, rather the beginning of a winding down period.

    He said that the main concern this year was to complete all the programmes that had been initiated.

    The minister, while stating that the PIA implementation has commenced and was fully on course added that it had 12 months to complete its work while the process of implementation would wind down around September 2022.

    On Auto Gas, he affirmed that the programme had commenced and would be brought into completion in 2022.

    He added that the rehabilitation of refineries had commenced and some aspects of the rehabilitation would be brought to completion this year.

    In a remark, Dr Nasir Sani-Gwarzo, the Permanent Secretary of the Ministry, described the Town Hall meeting as a milestone.

    Sani-Gwarzo also commended the minister for championing the struggles that birthed the PIA after being in the doldrums for 20 years.

    In an address, the Director, Human Resources Management of the Ministry, Dr Famous Eseduwo, praised the minister for responding brilliantly to the advance issues of oil and gas in Nigeria and the world at large.

    Eseduwo assured Sylva the ministry’s backing and support to achieve the set goals of the sector.

  • FG earns N174 billion from 2020 marginal field bid round

    FG earns N174 billion from 2020 marginal field bid round

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that the sum of N174 billion was realised from the 2020 Marginal Field Bid Round (MFBR) programme.

    The Commission Chief Executive, Mr Gbenga Komolafe, made this known on Thursday, in Abuja, at the NUPRC engagement with 2020 Marginal Field Bid Round (MFBR) awardees and leaseholders.

    The engagement was for the Commission to state the policy position on the 2020 programme, to enable successful awardees progress to field development phase in line with the Petroleum Industry Act (PIA) 2021.

    Marginal fields were conceived to entrench an indigenisation policy in the upstream sector to promote indigenous participation, increase oil and gas reserves, production, capital inflow, generate employment and build local capacity in the sector.

    In a keynote address, Komolafe noted that 57 fields were identified for the 2020 bid round exercise and a total of 665 entities expressed interest.

    He said that after extensive evaluation processes as laid down in the guidelines, 161 entities emerged potential awardees, while there were 247 unsuccessful bidders.

    “Signature bonuses for 119 awards were fully paid, nine awards were partly paid for and 33 awards were not paid for. This resulted in various challenges inhibiting the close-out of the exercise.

    “The marginal field guidelines provided for 45 days for the payment of signature bonus which has since elapsed, and we have issued a public notice to that effect as well as notified the relevant potential awardees.

    “Concerted efforts are being made to ensure that the 2020 MFBR exercise is completed within the shortest possible time,’’ he noted.

    The chief executive noted that the NUPRC management, on its assumption, set up a committee to look into issues surrounding the bid round and come up with strategies to resolve them.

    He listed some of the issues surrounding the bid round as the formation of Special Purpose Vehicles (SPVs), equity participation, and part payments.

    Komolafe stated that the committee had engagements with some awardees and would progress with these meetings next week in Lagos with another set of awardees.

    Furthermore, he said that the commission, through the Alternative Dispute Resolution Centre (ADRC), had offered an opportunity for co-awardees of marginal fields to resolve issues speedily and amicably.

    Mr Abel Nsa, Senior Technical Adviser to the Commission Chief Executive, in a presentation entitled “Post 2020 MFBR engagement status and policy direction’’ highlighted the pre and post PIA marginal field fundamentals, concept, roadmap and development.

    Under the PIA 2021, section 94 (8), a marginal field is described as a field or discovery which had been declared a marginal field prior to Jan. 1, 2021 or which had been lying fallow without activity for seven years after its discovery.

    Nsa further recalled that the Petroleum Act 19 (as amended) paragraph 17 of first schedule described marginal fields as fields not considered by license holders for development because of assumed marginal economies under prevailing conditions.

    “Fields that have had an exploratory well drilled on the structure and reported as oil and gas discovery for more than 10 years. Fields that current leaseholder consider for farm-out due to portfolio rationalisation.

    According to him, prior to 2020, 30 marginal fields were awarded, which included land (13), swamp (8) and offshore (nine).

    Also speaking, the Secretary and Legal Adviser of the NUPRC Board, Mrs Olayemi Anyanechi, said the programme was a policy for indigenisation, meant to develop content and competence in Nigeria, under Nigerian law.

    Eligible awardees, who were in attendance, expressed satisfaction with the updates from the engagement, urging the commission to look into issues bordering on the MFBR, including SPVs process, part payment and operational issues, among others.